With the rising speculations of global economic slowdown, coupled with Fed’s rate cut, Gold prices are on the bids this morning following a huge surge in prices during yesterday's session. The yellow metal trades close to the March high as sluggish data-points from the US and comments from one of the Fed policymakers raised prospectus of the rate cut by the US Federal Reserve. Another important aspect of the present price rally is the US-led challenges to global trade mechanism. The global risk barometer which is the 10-year US treasury yield, down to near September 2017 lows. Latest trade headlines suggest nearly $117 billion of losses due to the Trump administration’s Mexican tariffs while China is actively speaking against the US trade protectionism in media.
Gold prices continued to fly up during yesterday's session printing new highs, and closing up on March's highs in an extreme overextended move. The price is currently trading just below the 1326.20 resistance level as the yellow metal is positioned in an extreme overbought condition. The move should be exhausted by now, however the price may rally more before we focus on a correction or consolidation.
Support: 1307.09 / 1304.67
Resistance: 1310.38 / 1312.67